A large UK council has held discussions with a selection of US private placement (US PP) arrangers over the possibility of raising more than £200m in a single issue, according to a senior banker familiar with the situation.

Bafin, the German financial regulator, is seriously considering reclassifying Schuldscheine from loans to securities as the market pushes towards digitisation, according to a senior German debt banker. Such a move would have far-reaching consequences on demand for the product, which has allowed the market to blossom over the past two years, writes Silas Brown.

The US private placement (US PP) market considers itself well placed for the volatility surrounding Britain’s expected departure of the European Union on March 29, and participants expect additional deal flow as a consequence.

The Loan Market Association on Wednesday published a user guide for Schuldschein deals in a move that market participants said will make the market more approachable to international borrowers while maintaining its culture and standards.

Northern Gas Networks (NGN), the UK gas distribution company headquartered in Yorkshire, has sold £200m of US private placements notes, pricing at a tighter margin than what it could achieved from a sterling bond, said a US PP market participant.